Mark Kermode's DVD round-up

"Come closer now and see your dreams. Come closer now and see mine..." After a period in the funding wilderness (for which the British film industry should indulge in hearty self-flagellation) the majestic Terence Davies is back with "a love song and a eulogy" to his native Liverpool. Blending archive footage with reminiscences and quotation, Of Time and the City (2008, 12, BFI £19.56) is at once heartbreaking and hilarious, with Davies's gorgeously ripe narration rolling like heady wine around a half-filled glass, ready to be savoured and devoured.

Falling from grace with God and finding salvation in the church of the cinema, the artist relives his tortured spring awakenings with aplomb, badmouthing the "Betty Windsor show", inhaling tight-buttocked wrestling sweat and swooning to the magic of the movies. The surprise treat of the Cannes Film Festival, this life-affirming memoir matured into my favourite film of 2008 and grows more wonderful with each viewing.

While Davies transforms the "documentary" format into a lyrical personal hymn, Israeli director Ari Folman uses animation and dramatised first-hand testimony to address a shameful episode in his country's past - a massacre in Lebanon under Israel's guilty gaze - in a manner that is more "truthful" than mere reportage. Slipping stylistically between rotoscoped reality and dreamlike/nightmarish fantasy, Waltz With Bashir (2008, 18, Artificial Eye £15.65) plays out like a suppressed memory erupting unbidden from the national unconscious. It is dazzling, disturbing and disorienting stuff.

Meanwhile, Clint Eastwood's Changeling (2008, 15, Universal £19.56) beautifully recreates the unbelievable "real life" story of Christine Collins whose son was abducted in 1928, only to be "returned" to her by the LAPD in distressingly transfigured guise. Angelina Jolie is terrific as the sturdy mother battling charges of insanity, publicly defamed and thrown into an asylum for the crime of insisting that "that is not my son". Then truth, when finally revealed, is far stranger than any fiction and would be unbelievable were it not based on "real events".